Cloud Computing, Virtualization and Software Defined Networking – three
sides of the same coin – will soon bring the benefits of IT evolution to
the mobile broadband EPC. In the past, cellular networks were, by
necessity, hierarchical with centralized control and data structures.
These architectures required high performance, custom hardware to
process, and route traffic. With distributed architectures, the same
total MIPS and Bandwidth apply, but it’s more cost effective to manage
locally and meet the performance requirements of modern 4G networks.

The advent of 4G and the shift from voice-centric to data dominant
traffic aligns well with a distributed and virtualized Evolved Packed
Core (EPC). Using the preferred Telecom term, Virtualization, the
technology is gaining mindshare and the initial building blocks are now
at hand.

ABI Research expects virtualization of the EPC will move past the
curiosity and tire-kicking stage, and develop into a $400M market by
2018, representing upto one-third of the overall EPC market.

Joe Hoffman, principal analyst for mobile networks comments, “Operators
are of course looking to displace the expensive Big Iron from their
supply chain. When the time is right, and the technology proven as low
risk, operators will capture additional benefits beyond the low-cost
hardware, such as dynamic allocation and reuse of virtualized assets and
streamlined service and feature development.”

Joe adds, “In this brave new world of SDN and virtualization, NSN has a
slight lead with their Liquid Core virtualized network using COTS
hardware. While most other vendors use proprietary hardware, there is a
genuine push towards SDN and separation of the control plane. In general
2013 should bring more clarity on how different vendors will approach
virtualization and SDN.”

ABI Research provides in-depth analysis and quantitative forecasting of
trends in global connectivity and other emerging technologies. From
offices in North America, Europe and Asia, ABI Research’s worldwide team
of experts advises thousands of decision makers through 70+ research and
advisory services. Est. 1990. For more information visit www.abiresearch.com,
or call +1.516.624.2500.

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